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2019-04-25 10:16:52

TSLA

Tesla

$254.51

-4.19 (-1.62%)

, PTC

PTC

$91.51

-10.43 (-10.23%)

…10:16

04/25/19

04/25

10:16

04/25/19

10:16

Fly Intel: Top five analyst downgrades

Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. Tesla (TSLA) downgraded to Neutral from Outperform at Wedbush with analyst Daniel Ives saying the demand story is quickly changing and the company has "unfortunately not adjusted to an evolving EV landscape." 2. PTC (PTC) downgraded to Underweight from Neutral at JPMorgan, to Underperform from Neutral at BofA/Merrill, and to Neutral on IoT/AR uncertainties at Wedbush. 3. Xilinx (XLNX) downgraded to Hold from Buy at Needham and to Neutral from Buy at Goldman Sachs. 4. Spirit Airlines (SAVE) downgraded to Neutral from Buy at BofA/Merrill with analyst Andrew Didora saying industry pricing has not improved and sees some cost pressures that limit upside potential. 5. CyberArk (CYBR) downgraded to Neutral from Buy at UBS with analyst Fatima Boolani saying she remains bullish on the company's fundamentals as well as its execution consistency and "expanding mindshare in a market gone mainstream," which have accelerated the company's revenue growth to over 30% and supported the 70% year-to-date run-up in the stock price. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.

Cowen analyst Jeffrey Osborne says Tesla appears to be entering into an era of uncertainty as a period of normalized demand approaches after enjoying the last 18-24 months of pent up demand for the Model 3 from the deposit list. The analyst sees lower prices as largely indicative of a demand fishing expedition. Even as Tesla reiterated guidance, Osborne believes the company has some of the lowest forward-looking visibility in recent memory. He reiterates an Underperform rating and a $160 price target on the shares.

BofA Merrill Lynch analyst John Murphy said Tesla's "uglier than expected" Q1 results were largely due on an operating basis to weaker deliveries, lower pricing, and lighter gross margins and he revised his estimates to be relatively consistent with the company's outlook and commentary, though he keeps an Underperform rating and $225 price target on the shares. Murphy also said he sees an earnings/cash inflection in the second half as "somewhat questionable." He believes that Elon Musk now "appears amenable" to a capital raise, quoting the CEO as having said "At this point, I do think there is some merit to raising capital." Murphy noted that he does not expect Tesla to turn the corner on free cash flow until after 2020.

04/25/19

JMPS

04/25/19NO CHANGETarget $369JMPSOutperform

Tesla U.S. demand should recover over course of year, says JMP Securities

JMP Securities analyst Joseph Osha said Tesla's Q1 results were weak, but not more than he expected, and noted that its Q2 outlook was ahead of his previous estimates. The analyst, who thinks following the report that it is "clear that U.S. demand should recover over the course of 2019," believes the company can make money and is an attractive investment if Tesla can hit its volume targets. He lowered his price target on Tesla shares to $369 from $374 but maintains an Outperform rating on the stock.

04/25/19

JEFF

04/25/19NO CHANGETarget $400JEFFBuy

Jefferies still sees 'path to sustained profitability' for Tesla

Jefferies analyst Philippe Houchois says that beyond last night's headline miss and "ongoing stress," he saw "enough positive surprises from auto gross margin resilience, cash earnings and gross liquidity to argue the shares have sufficiently re-priced." The analyst, who admits his Tesla call is "hard to live with at times," still sees value in the company's electric vehicle/connectivity technology and experimentation. He remains confident "there is a path to sustained profitability." Houchois keeps a Buy rating on Tesla with a $400 price target.

Stifel analyst Adam Borg sees PTC shares remaining "in the penalty box" until execution improves but he remains a buyer of the stock as he continues to believe that industry and company-specific drivers and PTC's model transformation "offer plenty of opportunity for low-teens bookings growth and operating margin and FCF expansion." He sees the company's FY19 guidance cut being driven by two related issues, namely that PTC has hired less sales capacity than expected in IoT and AR and that it is seeing lower than expected bookings in the "lower-priority, lower-growth" areas of SLM and ALM. Borg keeps a Buy rating and $105 price target on PTC shares, which are down 10% to $91.32 in pre-market trading.

04/25/19

04/25/19DOWNGRADETarget $100Neutral

PTC downgraded to Neutral on IoT/AR uncertainties at Wedbush

As previously reported, Wedbush analyst Steve Koenig downgraded PTC to Neutral from Outperform, saying that the company's 2019 bookings guidance reduction accompanying its Q2/March print was disappointing, especially after a messy Q1 on large deal execution. Although the analyst likes the risk reduction inherent in the new guide, the appointment of a seasoned finance veteran as CFO, and the return of large PLM deals in Q2, he is stepping to the sidelines on incremental caution concerning the IoT/AR business. Koenig also lowered his price target on the shares to $100 from $104.

04/25/19

BOFA

04/25/19DOWNGRADEBOFAUnderperform

PTC downgraded to Underperform from Neutral at BofA/Merrill

XLNXXilinx

$119.70

-20.09 (-14.37%)

04/25/19

NEED

04/25/19DOWNGRADENEEDHold

Xilinx downgraded to Hold from Buy at Needham

Needham analyst N. Quinn Bolton downgraded Xilinx to Hold after its Q4 results, saying that while the quarter was "in-line to slightly better", the gross margin guidance for Q1 was "well below" consensus. The analyst adds that although he is impressed with growth in the company's Comms business, he sees a risk to multiple compression on the stock from deceleration in Wireless Comms and the possibility of delayed 5G deployments outside of Korea.

04/25/19

NEED

04/25/19DOWNGRADENEEDHold

Xilinx downgraded to Hold from Buy at Needham

04/25/19

FBCO

04/25/19NO CHANGETarget $135FBCOOutperform

Xilinx price target raised to $135 from $110 at Credit Suisse

Credit Suisse analyst John Pitzer raised his price target for Xilinx to $135 from $110 following quarterly results. The analyst reiterates an Outperform rating on the shares.

04/25/19

RHCO

04/25/19NO CHANGETarget $126RHCOHold

Xilinx price target raised to $126 from $102 at SunTrust

SunTrust analyst William Stein raised his price target on Xilinx to $126 and also raised his 2020 EPS outlook to $4.22 from $4.08 after its Q4 earnings beat and affirmed 10% long-term sales growth outlook. The analyst is keeping his Hold rating however, citing "solidly" lower than expected Q1 outlook. Stein believes that Xilinx shares are fairly valued, though he adds that he would be "more interested" on a "meaningful reset" in stock price given the company's "longer-term growth potential in datacenter, wireless, and automotive."

SAVESpirit Airlines

$52.26

-6.04 (-10.36%)

04/25/19

BOFA

04/25/19DOWNGRADEBOFANeutral

Spirit Airlines downgraded to Neutral from Buy at BofA/Merrill

As previously reported, BofA/Merrill downgraded Spirit Airlines to Neutral from Buy and cut its price target to $61 from $71 following the Q1 revenue miss and Q2 guidance below forecasts. Analyst Andrew Didora said industry pricing has not improved and sees some cost pressures that limit upside potential.

Imperial Capital analyst Michael Derchin lowered his price target for Spirit Airlines to $83 from $92 to reflect reflect higher fuel prices and conservatism on fiscal 2020 unit revenues. The analyst, however, says Spirit remains his top pick with an Outperform rating. Current share valuations are attractive due to moderate capacity growth, greater yield management capabilities, ancillary revenue growth with key initiatives in the pipeline, cost controls, and "significantly improved" operational reliability resulting in top-tier margins, Derchin tells investors in a research note.

04/02/19

SPHN

04/02/19NO CHANGETarget $63SPHNOverweight

Airlines needed some good news, and Delta delivered, says Stephens

With investor sentiment on the airline space negative, the group was in need of some good news and Delta Air Lines delivered a positive surprise this morning, Stephens analyst Jack Atkins tells investors in a research note. The airline pointed Q1 RASM growth to the upper-end of its initial guidance range, lowered its Q1 CASM excluding fuel expectation and raised its Q1 earnings guidance range, says the analyst. Atkins finds it encouraging that Delta noted underlying passenger demand remains solid and that the business market led the way during the quarter. Further, the company announced an extension of its credit card partnership with American Express (AXP), which is expected to double the revenue contribution to $7B by 2023 versus 2018 levels, he notes. Atkins reiterates an Overweight rating on Delta with a $63 price target. The stock in midday trading is up 7% to $55.64. Other names in the airline space include Alaska Air (ALK), American Airlines (AAL), JetBlue (JBLU), Southwest (LUV), Spirit Airlines (SAVE) and United Continental (UAL).

04/25/19

BOFA

04/25/19DOWNGRADEBOFANeutral

Spirit Airlines downgraded to Neutral from Buy at BofA/Merrill

CYBRCyberArk

$127.00

1.34 (1.07%)

04/25/19

UBSW

04/25/19DOWNGRADETarget $132UBSWNeutral

CyberArk downgraded to Neutral from Buy at UBS

UBS analyst Fatima Boolani downgraded CyberArk to Neutral while also raising her price target to $132 from $119. The analyst says she remains bullish on the company's fundamentals as well as its execution consistency and "expanding mindshare in a market gone mainstream", which have accelerated the company's revenue growth to over 30% and supported the 70% year-to-date run-up in the stock price. Boolani notes however that CyberArk stock is now trading about 70% above its historical medians across her valuation metrics and sees its "big beats looking priced in".

Mizuho analyst Gregg Moskowitz initiated coverage of nine Security Software companies. In his industry update note, titled "Welcome to the New Age of Software - Part II," he noted that "macro concerns remain very prevalent and 4Q tech fundamentals were uneven," but added that he expects "security companies will navigate these issues well, due in part to the fact that cybersecurity consistently ranks at or near the top of IT spending priorities by CIOs." The analyst concluded that "while hardly immune, we would expect security spend to be relatively resilient." Moskowitz noted that global security revenue is currently well in excess of $40B, and growing at a roughly high-single digit CAGR. However, Moskowitz also noted that the security market is very fragmented and contains many sub-segments. He sees four security themes that he believes will become increasingly important, and should help to underpin healthy growth in the sector in the coming years -- Zero Trust, Identity Management, Next-gen Endpoint, and Machine Learning/Automation. The analyst expects to see "generally similar levels of security M&A activity in 2019," although he noted that one variable that could cause this to skew higher would be a large security vendor takeout, which is a historical rarity. Moskowitz initiated three stocks with Buy ratings -- Palo Alto Networks (PANW), CyberArk Software (CYBR), and Rapid7 (RPD) -- and six stocks with Neutral ratings -- Check Point Software (CHKP), FireEye (FEYE), Fortinet (FTNT), Okta (OKTA), Proofpoint (PFPT), and Symantec (SYMC).

Catch up on today's top five analyst initiations with this list compiled by The Fly: 1. Casa Systems (CASA) initiated with a Buy at DA Davidson. 2. Sterling Bancorp (SBT) initiated with an Overweight at Piper Jaffray. 3. Takeda Pharmaceutical (TAK) reinstated with a Buy at Goldman Sachs. 4. CyberArk (CYBR) initiated with an Outperform at FBN Securities. 5. Varex Imaging (VREX) initiated with an Outperform at Northland. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.

According to a regulatory filing, Ryan Graves informed Uber Technologies of his intention to resign as a member of the company's board of directors, effective as of May 27, 2019, including any committees of the board of directors on which he serves. Graves' resignation was not the result of any disagreement between Graves and the company, its management, board of directors or any committee thereof, or with respect to any matter relating to the company's operations, policies or practices, according to the filing.

U.S. Energy announced that on May 21, Nasdaq notified the company that as a result of not having received its Quarterly Report on Form 10-Q for the period ended March 31. 2019, and because the company is delinquent in filing its Form 10-K for the year ended December 31, 2018, the company does not comply with the requirements of Nasdaq Listing Rule 5250(c)(1) for continued listing on the Exchange. This notification has no effect on the listing of the company's common stock at this time. However, pursuant to the notice, the company was required to submit a plan by May 23, 2019 to comply with the Exchange's requirements for continued listing.

Apple is being sued by customers alleging that the U.S. tech giant is unlawfully disclosing and selling information about users' iTunes purchases as well as their personal data, Bloomberg's Robert Burnson reports. The customers claim that such alleged practices are contrary to Apple's promise in advertising that "What happens on your iPhone stays on your iPhone," Burnson notes. Reference Link

SuperCom received a notification from Nasdaq for not having timely filed its Annual Report on Form 20-F for the year ended December 31, 2018, as previously disclosed by the company on May 16, 2019. The company does not comply with the Nasdaq Listing Rule 5250(c)(1). This notice from Nasdaq has no effect currently on the listing of the company's common stock on the Nasdaq Capital Market.

U.S. Energy announced that Nasdaq notified the company that as a result of not having received the company's quarterly report on Form 10-Q for the period ended March 31 and because the company is delinquent in filing its Form 10-K for the year ended December 31, 2018, the company does not comply with the requirements of Nasdaq Listing Rule 5250 for continued listing on the exchange. This notification has no effect on the listing of the company's common stock at this time. However, pursuant to the notice, the company was required to submit a plan by May 23 to comply with the exchange's requirements for continued listing. The company has submitted the plan to the exchange. If the exchange accepts the company's Plan, the exchange may grant an exception of up to 180 calendar days from the Form 10-K's due date, or until October 14 to regain compliance. The company continues to work toward the filing of the Form 10-Q and the Form 10-K with the SEC as soon as practicable.

Qiagen (QGEN) announced the launch of its therascreen PIK3CA RGQ PCR Kit after it received U.S. regulatory approval as a companion diagnostic to aid in identifying breast cancer patients eligible for treatment with PIQRAY, a newly approved therapy developed and marketed by Novartis (NVS). The therascreen PIK3CA Kit is the first companion diagnostic assay to obtain premarket approval from the FDA for use in any cancer indication for detection of activating mutations in the PIK3CA gene. It is also the first FDA approved assay for guiding treatment decisions in breast cancer using plasma specimens as a liquid biopsy.

Brazil's ANAC said it has suspended all flights and operations of Avianca Brasil in the South American nation as a precuartionary measure, Reuters reports. The move follows Avianca's filing for bankruptcy in late 2018, the report says. "All the flights are suspended until the company proves it has the capacity to maintain operations safely," ANAC said. Reference Link

Apple has bought Tueo Health, a start-up that was making a system to help parents monitor asthma symptoms in sleeping kids, CNBC's Christina Farr and Steve Kovach report, citing a person familiar with the deal. It is not clear how much the U.S. tech giant paid for the start-up, the authors note. Reference Link

A review of Boeing's grounded 737 MAX aircraft has expanded to include emergency procedures used by pilots on earlier models of the plane, further delaying its return to service, the Wall Street Journal's Andy Pasztor reports, citing U.S. government officials. The FAA hasn't questioned the safety of older aircraft currently in service, but the broadened review will play a major role in adding months to the time expected to get the grounded fleet of 737 MAX jets back in the skies, Pasztor notes. As part of the FAA's safety analysis of a proposed software fix for the fleet, the agency is also weighing changes to how pilots of the entire 737 family are trained to respond when the flight-control computer or other systems suddenly push the jet's nose down, the author says. Reference Link

The CBOE Volatility Index (VIX), the SPX option derived measure of implied volatility, fell 1.07 today to close at 15.85, while the underlying SPX index gained 3.82 to close at $2826.06, a 0.14% increase. 274,267 VIX option contracts traded, 38.73% of the typical daily volume for the product. Calls made up 74.0% of the volume.

Volume was average for this time of day. Breadth was mixed with issues and volume bullish while new highs to new lows were bearish (negative divergence). Advancing Issues: 2009 / Declining Issues: 1048 -- for a ratio of 1.9 to 1. Advancing Volume: 915,942,000 / Declining Volume: 681,710,000 -- for a ratio of 1.3 to 1. New 52-Week Highs: 57 / New 52-Week Lows: 114.

Volume was below average for this time of day. Breadth was bullish across the board. Advancing Issues: 1963 / Declining Issues: 956 -- for a ratio of 2.1 to 1. Advancing Volume: 1,549,354,000 / Declining Volume: 986,891,000 -- for a ratio of 1.6 to 1. New 52-Week Highs: 138 / New 52-Week Lows: 89.

Regional Health Properties, Inc. announcement concerning the company's noncompliance with the continued listing standards of NYSE American LLC. On May 21, 2019, the company received an official notice of noncompliance from the Exchange stating that the company is not in compliance with the Exchange's continued listing standards under the timely filing criteria outlined in Section 1007 of the Exchange's company Guide because the company failed to timely file its Quarterly Report on Form 10-Q for the period ended March 31, 2019, which was due to be filed with the Securities and Exchange Commission no later than May 20, 2019. For the reasons previously disclosed in its Form 12b-25 filed with the Securities and Exchange Commission on May 16, 2019, the company has not timely filed the Delayed Form 10-Q because additional time is needed to finalize the Delayed Form 10-Q and furnish the XBRL Interactive Data File exhibits required by Item 601b101 of Regulation S-K. The company is actively working to complete the Delayed Form 10-Q and intends to file the Delayed Form 10-Q under the Securities Exchange Act of 1934, as amended, within the next thirty days. As a result of the foregoing, the company has become subject to the procedures and requirements of Section 1007 of the Company Guide. During the six-month period from the date of the Filing Delinquency, the Exchange will monitor the company and the status of the Delayed Form 10-Q and any subsequent reports until the Filing Delinquency is cured. If the company fails to cure the Filing Delinquency within the Initial Cure Period, the Exchange may, in its sole discretion, allow the company's securities to be traded for up to an additional six-month period, depending on the company's specific circumstances. If the Exchange determines that an Additional Cure Period is not appropriate, suspension and delisting procedures will commence in accordance with the procedures set forth in Section 1010 of the Company Guide.